Nigeria’s public finances are facing renewed scrutiny following a disagreement between the Federal Government and the World Bank over the country’s debt burden, while delays in publishing quarterly budget implementation reports have raised concerns about transparency.
The World Bank’s October 2026 Nigeria Development Update reported that the Federal Government spent ₦7.7 trillion on interest payments in the first half of 2026, exceeding its revenue of ₦6.2 trillion during the same period.
The figures suggest that interest payments consumed 124.2 per cent of federal revenue, leaving limited resources available for infrastructure, salaries and essential public services without additional financing.
However, the Federal Ministry of Finance has challenged the assessment, arguing that the calculation excludes some government revenue while including debt obligations serviced by the Federal Government on behalf of state governments.
The ministry said the comparison does not fully reflect the country’s fiscal position because the figures used do not cover the same sources of revenue and debt obligations. It also pointed to revenue collected by government agencies and enterprises but not yet remitted to the Treasury.
The government maintained that revenue collection has improved faster than interest costs. Between the first half of 2025 and the corresponding period in 2026, federal revenue increased by 72 per cent, from ₦3.6 trillion to ₦6.2 trillion, while interest payments rose by approximately 38 per cent, from ₦5.6 trillion to ₦7.7 trillion.
The ministry also argued that full-year figures provide a more complete picture of the government’s capacity to meet its debt obligations than data covering only six months. However, it did not provide a revised interest-to-revenue ratio to replace the World Bank’s calculation.
The dispute comes as Nigeria’s public debt continues to rise. Data from the Debt Management Office showed that total public debt reached ₦166.8 trillion as of June 2026.
The Federal Government accounted for ₦152.7 trillion, or about 92 per cent of the total, while the 36 states and the Federal Capital Territory collectively owed ₦14.1 trillion.
Beyond the disagreement over debt figures, the absence of recent quarterly budget implementation reports has made it more difficult to assess government spending and track how public funds are being used.
Nigeria has not published budget implementation reports beyond the third quarter of 2025 in its publicly available records, leaving reports for the fourth quarter of 2025 and subsequent quarters unavailable.
The Fiscal Responsibility Act requires quarterly budget execution reports to be published within 30 days after the end of each quarter. The reporting gaps therefore raise questions about compliance with disclosure requirements and the public’s ability to monitor government expenditure.
Without timely reports, analysts and citizens have less information to assess whether spending aligns with approved budgets, whether revenue targets are being met and how much funding remains available for public services.
The World Bank’s assessment and the Finance Ministry’s response highlight the importance of consistent, transparent fiscal reporting. Publishing complete budget execution data and clarifying how revenue and debt-service figures are calculated would help resolve differences in interpretation and improve public understanding of Nigeria’s financial position.
